By Rob Stokes, head of outsourcing at Randall & Payne 

At Randall & Payne, we have been discussing the benefits of switching to cloud accounting and one of these is how you can integrate your cloud accounting system with software that can help solve some of the most prevalent issues in the world of business.

In this article we review how using cloud software that integrates with Xero can improve your cash flow - which can mean spending less time chasing customers and worrying about money and more time working on the aspects of your business that you love.

Research by Dun & Bradstreet published in 2018 found that 76% of firms surveyed see late payments as a current challenge or something that will become a challenge in the next 12 months - with these firms being owed an average of £80,141 in late payments. This is an extraordinary amount of money that can mean the difference being a business' doors staying open or not, over the coming uncertain year.

With the impending Making Tax Digital deadline, alongside the other benefits of cloud accounting software, we have set out to identify cloud-based solutions to improve cash flow for our clients that can keep time and late payments to a minimum.

The following is advice you may like to consider:

Step 1: Invoicing - The first part of getting paid on time is getting the invoice out to the customer as soon as possible. Using Xero, for example, the invoice can be generated anywhere with an internet connection, it can be emailed to the customer as soon as it is raised and encourages them to pay the invoice quickly. This can be done using the Xero app or using the full cloud system.

Step 2: Automated Payments - To make payment as easy as possible use apps, such as GoCardless, Stripe or iZettle, which integrate with your invoicing software such as Xero, giving you flexibility as follows:

• GoCardless is a Direct Debit software that would let you automatically debit customers rather than waiting for them to pay, and all you have to do is get the customer to fill out a Direct Debit mandate. This option is the best when customers pay on a regular basis as it would be unnecessary to sign them up if you are only ever going to invoice them once.
• Stripe, is an online payment software that can be used to attach a link to the invoice you email to the customer, so all they have to do is bring up the PDF of the invoice you have emailed them and click on the 'Pay Now' button to pay you.
•  iZettle is a Point of Sale and Payments app that allows you to connect a card machine via Bluetooth to your phone, allowing you to take physical payments immediately after sending an invoice, providing you have an internet connection, so you can use the app and card machine to take a payment immediately.

Step 3: Credit Control - If you find that keeping track of who owes you what and sending reminders takes too much time and effort, then you will want to use a Credit Control app, such as Chaser, Debt Daddy or Fluidly, which integrates with your invoicing software to keep track of which customers owe you what, sending automatic reminders at specified time periods after the due date to encourage your customers to pay.

During this time of uncertainty, one thing business owners need to know is how much money they are owed and to effectively get the 'cash' in, to secure the future of their business.

Download our free report explaining Making Tax Digital and our recommendation for Xero as the preferred accounting software and the reasons why here .

If you would like more information on the cloud software suitable for your business and how it can improve your cash flow, please contact Rob Stokes on 01242 776000  or rob.stokes@randall-payne.co.uk.